Ferrexpo reports rise in volumes amid Ukraine legal case

7th May 2024 07:23

(Sharecast News) - Ferrexpo reported a notable rise in production and sales volumes for the first quarter at its Ukraine subsidiary, Ferrexpo Poltava Mining (FPM), on Tuesday.

The FTSE 250 company said the increase made for the highest levels since Russia invaded Ukraine in February 2022, adding that production at its operations in the country continued without disruption in April.

It also updated the market on the legal matter concerning LLC PCC Kysen (Kysen), reporting that a preparatory hearing originally set for 29 April at the Commercial Court in Poltava Oblast had been rescheduled for 4 June.

Regarding a royalty-related investigation, Ferrexpo said in its 2023 full-year financial results that a notice of suspicion was issued to a senior manager of FPM, Viktor Lotous, on 31 October 2023, pertaining to the potential underpayment of iron ore royalties.

On 13 November, a court approved bail for Lotous amounting to UAH 800m (£16.25m).

An appeal led to the Kyiv Court of Appeal approving a reduced bail of UAH 650m on 29 April, without providing a rationale for the adjustment.

Ferrexpo said its board, after careful consideration of the group's financial position, opted to make a partial payment of UAH 50m towards the bail in alignment with Ukrainian law, which does not mandate payment of the full bail amount.

The company said its operations in Ukraine remained unaffected by the legal developments.

Reporting by Josh White for Sharecast.com.